By Andrew Batt:
Asking prices for property in the United Kingdom rose by 2.1 percent in March to a new monthly record, although asking prices for property in London saw a decline – by 0.5 percent.
Data from Rightmove which lists more than 90 percent of available property in the UK revealed average asking prices up by £4,996 in March to £244,706, the highest figure ever recorded for the month.
The fourth consecutive rise also saw asking prices increase by 6.9 percent (£15,717) so far this year.
Figures for this month are expected to beat the previous all-time record high on the back of more positive sentiment and a shortage of properties which is fuelling upward price pressure.
The website noted there are now four percent fewer properties being marketing now than during the same period last year.
Miles Shipside, Director and Housing Market Analyst at Rightmove, said: “Transaction volumes may be historically low but, paradoxically, new seller asking prices are not far from a new record high. With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices.”
“With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. This should not be confused with an overall market recovery, as while Spring may be here the on-going chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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